July 1, 2006
You're watching the articles of Euribor for the day on July 1, 2006.
Virtually all media have echoed the ninth rise in the Euribor and almost all have done the calculations with a hipooteca 120,000 € to 20 years, something that today is not at all in the mainstream.
La Gaceta de los negicios is the only way it has gone beyond the press release distributed by Reuters.
Os hit, part of his article:
Annual review
This time, the rise in the Euribor has been primed with having to perform a review of your mortgage this month, as they will suffer the greatest price hikes of the past six years. Specifically, since November 2000.
The explanation is simple. The Euribor in June 2005 was at 2.103%. When the Bank of Spain made official in the benchmark index this month, and published in the Official State Bulletin, an annual review of the price of the mortgage loan will be made on the 3401%. No less than 1.3 points of difference that will make significant share of the monthly mortgage.
In a mortgage of 180,000 euros to 30 years to 0.6 points over Euribor, the impact of 1.3 points over the Euribor between June 2005 and the same month this year will mean that the customer will have to pay 129 euros more if the review is annual.
Those who have paid six-monthly review additional 63 euros, almost half that in the year, as compared to 2.78% from December 2005 to 3.4% in June this year. A rise of 0.62 points.
For their part, the mortgage loans with quarterly review will suffer a rise in well below the monthly fee: 30 euros. Is the translation of a 0295-point rise in the benchmark index since March (3105%) until June.
Written by Carlos Lopez on July 1, 2006 with 1 comment
Read more articles on Euribor.
The gradual rise in interest rates that have been taken by the European Central Bank, with a corresponding rise in the Euribor (now exceeds 3.5%), will force a drop in demand in consumption in the Eurozone in the first months of 2007, as SP noted in its latest economic report on the region. Among the countries most exposed to this slowdown is Spain.
The governor of the ECB has pointed out that the body is always presides alert to the inflationary risks and keeps all options open about the pace of movement in interest rates.
That was immediately interpreted as a reminder from Trichet that the ECB not only has the ability to raise rates anytime, but also what they deem fit, which leads to think immediately of the possibility of rising above the quarter-point percentage, as hitherto been the usual. "We never commit ourselves wholeheartedly to any particular action. We will do whatever is necessary when necessary," said Trichet in that direction.
Most analysts still believe that the bank will continue with increases of 25 basis points, and that the next rise will not occur until late August. But the truth is that the unusual spate of comments from ECB members of the last week appears to be designed to alert well before the financial markets about an acceleration in the pace of price increases.
Written by Carlos Lopez on July 1, 2006 with 54 comments
Read more articles on Euribor.
Busting, besides the month above the 3.5%
The Euribor, the main indicator for setting the interest rate on most mortgages, rose in June for the ninth consecutive month up to 3401%, according to provisional data from the market. This is the highest level ever for this indicator since August 2002.
In this way, the Euribor has risen almost a tenth respect to May 3308% and 1.3 percentage points over the past year, since in June 2005 stood at 2103%.
The Euribor will continue to rise, albeit slightly, until the end of 2006 before the "contagion effect" of increases in interest rates in the United States and the aggressive statements by the European Central Bank (ECB) on its ability to raise the price of money in the euro zone, according to the analyst at Fortis Estefania Ponte. "The Spaniards will suffer a lot this year," agregó.Ponte noted that if the ECB continues with its warnings about continued increases in interest rates, the Euribor could end 2006 even at 4%, while insisting that the next year Progress Indicator will be more moderate.
Various analysts estimate that the situation may be even worse. The possible rise in interest rates by the European Central Bank in August would be a factor against even the Euribor could be placed in 4% at year end.
Written by Carlos Lopez on July 1, 2006 0 comments
Read more articles on Euribor.
